KfW and Federal Government Improve Support for Families Buying Renovation Properties
KfW and the German federal government have increased loan amounts and made conditions more flexible for the "Jung kauft Alt" program, which helps families purchase and renovate older homes. The aim is to make homeownership more attainable for more families.
Frankfurt – KfW, the German development bank, and the federal government are enhancing support for families purchasing and renovating older, energy-inefficient homes through the "Jung kauft Alt" (Young Buys Old) program. The changes, effective August 3, 2026, aim to make homeownership more accessible for low- to middle-income families.
The maximum loan amount for families with one child will increase from 100,000 euros to 140,000 euros. Families with two children can now receive up to 160,000 euros (previously 125,000 euros), and those with three or more children can receive up to 180,000 euros (previously 150,000 euros). The interest rates, subsidized by the federal government, are currently at an effective rate of 0.53 percent for a 35-year loan term with a 10-year interest rate commitment.
A key requirement of the program is the commitment to energetically renovate the acquired property within 54 months of the funding approval. Previously, a comprehensive systemic renovation to a specific efficiency standard was mandatory. Now, families can also fulfill this requirement through a package of individual measures. These typically include window replacement, facade and roof insulation, and upgrading the heating system to run on at least 65 percent renewable energy.
The program is open to individuals buying their first home for personal use, with at least one minor child, and an annual taxable household income not exceeding 90,000 euros (plus 10,000 euros for each additional child). The purchased property must be classified in energy efficiency classes F, G, or H at the time of application. Applications for these loans are processed through homeowners' primary banks and can be combined with other federal energy efficiency grants, such as those under the BEG program.